TRAILER BRIDGE MOVES INTO THE RED

TRAILER BRIDGE MOVES INTO THE RED

   Trailer Bridge Inc., the U.S. mainland/Puerto Rico shipping line, reported an operating loss of $4.1 million and a net deficit of $5.2 million for the second quarter, as it suffered falls in volume, vessel utilization and revenue.

   The results for the latest quarter compare with an operating income of $1.3 million and a net income of $628,000 in the second quarter of last year.

   “The operating loss was a result of decreased volume across all sectors other than core southbound trailers, lower yields, lower tractor asset utilization, increased purchased transportation and fuel costs,” Trailer Bridge said.

   The operating loss for the three months ended June 30 was further impacted by the expense related to the dry-docking of one of its roll-on/roll-off operated vessels, the company said.

   Total revenue for the second quarter was $21.7 million, down 9 percent from the same quarter last year.

   Trailer Bridge reported decreases in shipping volume in all sectors other than core southbound trailers, and a decreased yield.

   Total southbound Puerto Rico volume for the latest quarter decreased 2.7 percent and total northbound volume decreased 26 percent compared to corresponding quarter in 2000.

   “The market conditions in the trade lanes in which the company operates that have been characterized by excess high-cost vessel capacity continued throughout the three months ended June 30, 2001,” the shipping line said. “Overall market volume reductions and the operation in bankruptcy by a large carrier in the trade further exacerbated competitive activity,” it added, referring to the recent filing for bankruptcy protection by NPR/Navieras.